Healthcare organizations are consolidating at an unprecedented pace. Large systems continue to acquire smaller providers, while independent entities merge to gain scale, efficiency, and financial resilience in an increasingly complex operating environment.
While mergers offer growth potential, the process comes with many considerations, including those related to culture and talent. Here is how to handle post-merger considerations, with a focus on the healthcare sector.
Understanding the Impact of Mergers on Talent and Culture
Healthcare mergers can unlock meaningful advantages, from shared technology platforms to expanded access to specialized care. But the operational gains of consolidation are not automatic. When organizations come together, workforce integration often becomes the most complex and underestimated challenge.
When one company buys another or two smaller companies merge, roles can shift, and leadership often changes. This uncertainty can cause employees to leave. Data shows that the average employee turnover rate after a merger is 47% in the first year, rising to 75% within three years. One of the primary reasons is cultural mismatch. Around 30% of merger turnover is due to differences in company culture.
From a lack of communication and transparency to increased workloads, post-merger healthcare companies often face high turnover, which is costly. The key is to be aware of this possibility so that strategies are developed and implemented before, during, and after mergers.
Strategies for Retaining Key Talent Post-Merger
There are many examples of healthcare mergers, ranging from hospitals and healthcare groups to virtual care platforms. Each merger comes with many unique considerations — but all must assess talent and culture-related variables.
To ensure a smooth transition and a more unified organization, create and implement proven strategies that account for talent and culture.
Communicate and Welcome Feedback
One of the greatest make-or-break factors for healthcare mergers is internal communication. Effective communication plans encourage trust-building, as employees feel informed and supported. Providing regular updates can be enough to alleviate fears that often lead to rumors.
Companies should be willing to include their team in this transition process, welcoming feedback and questions. If necessary, HR leaders can adjust their approach based on employee concerns, which can directly impact business operations.
Develop Incentive Programs and Encourage Career Development
Post-merger, employees will wonder where they stand regarding their future growth potential. Make it clear there’s room for advancement, then provide insights on how employees can advance their careers. Provide opportunities to develop leadership skills or offer other upskilling programs.
Some companies, when able, offer retention bonuses to keep top talent during periods of uncertainty. These post-merger talent retention bonuses showcase an organization’s commitment to retaining talent and supporting those who help the company achieve its goals. These bonuses can be tied to your performance-based bonus program.
Identify and Support Key Personnel Early in the Process
The top companies, including those in healthcare, focus on human capital after mergers and acquisitions. These companies understand that their people are their most valuable asset.
Identify existing employees who contribute to a positive, productive environment and provide incentives to maintain their loyalty. Also, focus on training, development, and well-being programs that enhance the workplace environment for everyone. These tactics not only help reduce turnover but also employee burnout.
Preserve and Integrate Organizational Culture
Before a merger, companies must prioritize due diligence. Of course, assessing financial variables matters, but so does cultural fit. An assessment should be conducted to analyze both organizations’ values and structures. Identify potential talent issues before they arise. Conduct a similar assessment post-merger, incorporating feedback.
Aligning leadership and establishing a unified vision to drive a successful merger. These leaders must be transparent and communicate frequently. A co-creation of values and leaders must model desired behaviors.
Although preserving culture after mergers is possible, it should be apparent that one company’s culture doesn’t overshadow the other. Instead, a shared vision should emerge, and the leadership team leads by example.
Invest in Tailored Talent and Hiring Solutions
Preparing for a merger? MRINetwork can help. For over six decades, the MRINetwork team has helped businesses navigate the talent and hiring landscape.
If you’re preparing to build an organization that merges two companies and focuses on healthcare for the future, now is the time to redesign and prioritize work teams.
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